How to Help Seniors Manage Their Finances
Make a list of income and assets.
How to Determine Income and Assets
Income. Knowing what elderly family members have as sources of income can help you keep track of whether it's coming in as it should and let you know what you and they can expect as long-term needs change. Their tax forms should tell you most of these things, but bank deposits (both checks and direct deposits) and account statements may provide additional information. Income might include:
- Social Security, retirement, disability, dependents, or survivors benefits, which will likely show up every month on the bank statement as a direct deposit. To find out about the nature and amount of their benefits, you can check online at the Social Security Administration web page called Already Receiving Benefits.
- A pension from work.
- IRAs and 401(k)s.
- Veterans benefits.
- Dividends from or sale of investments.
- Payments from current or previous businesses.
- Rents, royalties, loans (including personal loans to friends or family).
- Annuities.
- Reverse mortgage or other real property loan.
Also, if either of your parents has had an ownership interest in a business, even if they're no longer actively engaged, they may still have a contractual connection to it that provides regular income.
Assets. Your loved ones may also have both liquid assets (nonphysical property such as bank accounts and stocks) and interests in real estate.
Their liquid assets may be only in bank checking and savings accounts, or they might be more complicated, including stocks and bonds, brokerage accounts, or other investments. Each of these accounts will regularly send them a statement, and from these statements you make a list of the names and account numbers. Then compile the records for these assets, using separate folders for each.
In addition to the home they live in, seniors may rent, own, or have an interest in other real property. For each of these, there may be any of the following documents reflecting ownership and liabilities regarding the property:
- Deeds and other title documents
- Mortgage documents (including any reverse mortgage)
- Liens recorded against the property
- Tax bills on the property
- Insurance policies
- Condominium or other common property agreements
- Bills for regular utilities and services
- Rental agreements, whether the senior is a renter or landlord
